President Donald Trump has returned to mainstream again and has once again attracted attention. According to Reuters, the president has decided to pay a visit to the Federal Reserve after consistently urging Fed Chairman Jerome Powell to cut interest rates. This event is important to the world as it could unfold three core elements that investors should pay attention to. What might unfold tomorrow? Here is a list of three provisional components:
Trump Visiting the Federal Reserve: Three Things That Could Expand
1. DXY index volatility
The US dollar index, which tracks the value of the US dollar against a basket of currencies, could experience fluctuations after Trump visits the Federal Reserve. This may mainly happen as Trump may once again put pressure on Jerome Powell to lower interest rates. His comments and statements will play a crucial role in determining the overall strength and flow of the market.
2. Gold or Bitcoin may move up or down
President Trump’s visit to the Federal Reserve may encourage Jerome Powell to consider lowering interest rates. Additionally, Trump, alongside Sen. Cynthia Ramis, has been fighting for Powell to step down and leave the reserve forever. Powell has held his position, stating why he doesn’t want to lower the fees despite intense pressure from the president himself.
If tomorrow or worst price reduction decision is made in any way, if Powell resigns, if gold, Bitcoin suddenly surges, lowering interest rates will undervalue USD-inspired assets and inactive. This development could encourage investors to diversify their portfolios by investing in assets such as gold and Bitcoin to protect their assets from future volatility caused by interest rate reductions.
3. Stock prices may drop
Jerome Powell has recently held his foot down and has said he doesn’t want to cut interest rates for now. Despite the crackling pressure that the president is wearing Powell, tomorrow’s visit could be the ultimate breakpoint for both parties. If development decides to lower interest rates, it could first show global stocks showing signs of a gradual decline, leading to tough market volatility.
